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Article
LONG- AND SHORT-RUN EFFECTS OF ECONOMIC GROWTH ON GHG EMISSIONS IN THE NEW EU MEMBERS. A HETEROGENEOUS DYNAMIC PANEL DATA MODEL
Corina Saman, Bianca Pauna
ABSTRACT: We study the long- and short-run impact of economic growth on GHG emissions in the new EU countries using a dynamic error-correction common-correlated effects model with heterogeneous coefficients. Using a panel data set of 11 countries over the period 1990-2022, we find a negative impact of real output on environment quality, since GDP growth increases GHG emissions, and an opposite effect of the influence of financial development (for most countries) and of the renewable energy consumption in both the long and short term. These effects vary significantly across countries.
KEYWORDS: GHG emissios, Economic growth, Financial development, Renewable energy, dynamic heterogeneous panels, cross-section dependence.
JEL classification: Q56, O57, C23, C51.